Ciena returns to S&P 500 after getting booted 17 years ago

Ciena returns to S&P 500 after getting booted 17 years ago

Ciena, a prominent player in networking hardware, is set to rejoin the S&P 500 index, marking its return after being removed 17 years ago. Following the announcement, the company's stock experienced a surge during after-hours trading. The change comes as Ciena takes the place of Dayforce, a human resources software company recently acquired by private equity firm Thoma Bravo for a staggering $12.3 billion. Ciena specializes in high-speed fiber optical networks and has reported significant revenue contributions from major clients, including an unnamed cloud provider accounting for nearly 18% of its revenue in the 2025 fiscal year, and AT&T contributing around 11%. In the past year, Ciena's market capitalization has nearly tripled. Historically, stocks added to the S&P 500 tend to see price increases as fund managers acquire shares in anticipation of the index change. Other technology firms such as AppLovin, Datadog, DoorDash, and Robinhood made their S&P 500 debut in 2025. This return to the index is significant for Ciena, which first joined in 2001 during the dot-com and telecom boom, only to be removed in 2009 when Visa took its spot. The current surge in demand for data center infrastructure, driven by the rise of generative artificial intelligence, has reignited investor interest in the company. CEO Gary Smith stated during a December conference call that this growth opportunity is expected to significantly contribute to Ciena's anticipated growth rate for 2026, predicting a revenue increase of approximately 24%, the fastest since 2011. On the same day, Ciena's stock closed at its highest level since 2001, while networking giant Cisco also saw its stock reach new heights. With the escalating need for AI capacity, Ciena’s finance chief, Marc Graff, noted that the availability of essential components, such as memory and optical parts, has become increasingly limited, leading to higher prices. To mitigate supply chain challenges, Graff emphasized the company's efforts to collaborate closely with key suppliers.

Sources : CNBC

Published On : Feb 05, 2026, 24:15

Startups
NIIT's AI Revolution: Transforming Enterprises and Driving Revenue Growth

For many years, NIIT has been a cornerstone of computer training, equipping students for careers in India's rapidly grow...

Business Today | Jul 03, 2026, 11:30
NIIT's AI Revolution: Transforming Enterprises and Driving Revenue Growth
Startups
Perplexity's Visionary Founder Champions American Opportunity Amidst Economic Challenges

Aravind Srinivas, the CEO and co-founder of Perplexity, remains optimistic about the prospects of the American dream, as...

Business Insider | Jul 03, 2026, 12:45
Perplexity's Visionary Founder Champions American Opportunity Amidst Economic Challenges
Computing
The New Era of Browsers: Exploring Innovative Alternatives to Chrome and Safari

The landscape of web browsers is evolving dramatically this year, shifting the focus from traditional search capabilitie...

TechCrunch | Jul 03, 2026, 19:00
The New Era of Browsers: Exploring Innovative Alternatives to Chrome and Safari
Automotive
How Your EV Could Be Vulnerable: Understanding the BAT-BMS App Dilemma

In recent weeks, social media has been flooded with videos showing individuals halting moving e-rickshaws on busy street...

Business Today | Jul 03, 2026, 10:10
How Your EV Could Be Vulnerable: Understanding the BAT-BMS App Dilemma
Gadgets
Investigation Launched into iPhone 18 Pro Data Breach Linked to Tata Electronics

In the wake of a significant data breach at Tata Electronics, sensitive details regarding Apple's forthcoming iPhone 18 ...

Business Today | Jul 03, 2026, 11:30
Investigation Launched into iPhone 18 Pro Data Breach Linked to Tata Electronics
View All News